Stamford, Conn.-based Basso Capital Management said Thursday that almost all of its hedge funds finished the first quarter in the red.

The firm, which manages $2.57 billion, told investors that its Credit Opportunities Fund is down 14% this year after dropping another 2.37% in March. It also posted losses in its Basso Partners and Basso Investors vehicles, both of which are down 2.8% on the year.

“Investors and managers have failed to live up to the challenges we are facing in the current market environment,” Basso CEO Howard Fischer wrote. “It is evident to us that many funds are forcibly liquidating part or substantially all of their portfolios.”

The firm also said its two multi-strategy funds are down 4.75% through the first quarter after a 1.1% March decline.